Your Social Security

Hi Everyone,

Just a short message today, but very pertinent

– I received an email regarding our Social Security, quite a while ago. I didn’t want to share it with anyone until I had a chance to check the math. So, I put it in a file and just thought about it again today – did the math, and it does check out real closely.

The email reinforces the fact that we have paid for our Social Security check that comes every month – it came out of our paychecks, and has been earning interest since day one. You may find it interesting too:

“Remember, not only did you contribute to Social Security, but your employer did, too. It totaled 15% of your income before taxes.

Looks like Hollywood Hills“If your wages averaged $30K yearly, over your working life, that’s close to $220,500 that was put into the Government’s Social Security “pot”, supposedly so you could be secure and comfortable in your retirement years.

“If you calculate the future value of $4,500 per year (yours & your employer’s contribution) at a simple 5% (less than what the government pays on the money that it borrows), after 49 years of working you’d have $892,919.98.

“If you withdraw only 3% per year, you will receive $26,787.60 per year and it will last more than 30 years (until you’re 95, if you retire at age 65), and that’s with no interest paid on that final amount on deposit!”

So, while Dick and I are very glad to receive our Social Security, why shouldn’t we?!

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6 Responses to Your Social Security

  1. Joaquin Chea

    March 8, 2013 at 7:22 pm

    You’re correct, and it annoys me when politicians
    call Social Security an “entitlement” as if
    we’ve done nothing to earn that money, and are somehow a burden on the system! Grrrrrr!!

  2. Jimmy

    March 8, 2013 at 8:59 pm

    United states government has us by the ba$$s and squeezing harder everyday!I see a boston tea party on the horizon!Glad I moved to the Philippines!Anywhere but the good”OLD” USA!

  3. Bill Barnes

    March 9, 2013 at 9:41 am

    I rmember the “lock box” comment made by Al Gore (Inventor of the Internet and model for Love Story). At that time he tried to make everyone believe that there was an actual place that was locked to keep SS safe. It was BS of the most odiferous kind. SS contributions (read taxes) used to be separate from teh generla fund but back when LBJ was in office it switched and was put in the genral fund. What is in that “Lock Box” is IOU’s from the governemt.

    Galveston, TX was one of a few municipalities that took advantage of a SS loophole way back and opted out. They still deducted the SS amount but it went into a private retierment account managed by a civilian firm. A worker averaging less than $50K per year could expect to retire after 30 yars with over $1,000,000 in the bank. The hle was closed but, as far as I know, Galveston still has the same system for it’s municipal employees. It costs the city a hell of a lot less than the enormous unfunded retirement plans of other large cities and has a better return.

  4. thomas myers

    March 9, 2013 at 7:54 pm

    The old divide and squander. Keep you arguing,while they pick our pockets.

  5. Sue Floyd

    March 9, 2013 at 10:51 pm

    We as individuals have to earmark our monies, let the government do the same and leave the SS money for that purpose. If the administration runs out of funds then I say we should sue the government for fraud or embezzlement since we were forced to relinquish our hard earned money.

  6. Gerry DuBrino

    March 10, 2013 at 6:12 am

    Congress has been taking money out of SS since its inception. they put back what’s called “zero coupon bonds” ( an I.O.U. And, it’s not even considered in the deficit.
    There’s lots of dirty little secrets laying around the hallowed halls. Term limits is one of the major solutions to fixing this country. Building empires on our tax AND SS money has got to stop.

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